SUM xfx MarketValue! B C D E F G H 1 Altius Primeria Bantam 2 Market Share, retail (5) 55.2% 15.0% 17.3% 3 Total Market 4 Retail Sales (in millions) 5 Retailer Gross Margin 6 Manufacturer Sales 7 Manufacturer Gross Margin 8 Gross Profit (in millions) $ 483.0 Points of 12 $ $ $ 15.0% 20.0% 20.0% MarketValuells $ 0.0% 0.0% 0.0% $ $ $ 10 11 Market Share (unit sales) 35.1% 17.1% 14.7% 12 Value of market share point, unit sales (in millions) $ $ $ 13 14 15 How much is advertising budget? 16 17 35.0 5 15.0 N/A Total Points: of 50 SUM fx Marginl A B C D E F G H Victor TX Victor Elevate 2 Retaller Price 3 Retailer Margin % $ $ $ 0.0% 0.0% 0.0% Points of 12 Retailer Profit Margin $ $ $ 6 Altius Price (to retaller) $ S $ 8 Altius Margin % 9 Altius Contribution- 10 Altius Variable Costs 0.0% 0.0% 0.0% $ $ $ S $ $ 7.75 11 12 13 Average Gross Profit per unit 14 Percent of sales 15 Calculation of weighted average 16 Average contribution for Victor 17 Break-even contribution rate 18 Elevate-Value of market share point, unit dollar sales (in 19 milions) 20 if Elevate Takes more than this percent of sales it harms Victor 21 and total revenue/profit Sales from Sales from Victor TX Victor 70% $ 0.0% from Altius MarketValue sheet SUM xfx PriceCuts! A B D E F G H 1 Victor TX 3 Retail price 4 Retailer margin 5 Altius Price toRetailer 6 Altius Variable Costs Altius Unit Contribution 8 Altius Gross Margin 10 Discount by Altius 11 Unit Sales increase needed to maintain profit 12 13 Victor 14 15 Retail price 16 Retailer margin 17 Altius Price toRetailer 18 Altius Variable Costs 19 Altius Unit Contribution 20 Altius Gross Margin 21 22 Discount by Altius 23 Unit Sales Increase needed to maintain profit Current Price Cut Price Cut Two (Pa) Price (P) One (Pa) $ 48.00 $ 46.00 $ 44.00 15% 15% 15% sss $ $ $ $ $ $ $ $ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Points of 13 Current Price (P.) Price Cut Price Cut One (Pa) Two (Pa) $ 39.00 $ 37.00 $ 35.00 15% 15% 15% $ $ $ $ $ $ $ $ 0.0% 0.0% 0.0% 0.0% 0.0% 4 0.0% 0.0% SUM 1 Victor TX fx-MarginCuts! A B D E F G Margin Margin 2 3 Retail price 4 Retailer margin 5 Altius Price to Retailer 6 Altius Variable Costs 7 Altius Unit Contribution 8 Altius Gross Margin 9 10 Discount by Altius 11 Unit Sales increase needed to maintain profit Current Cut One Cut Two Price (P.) (Pa) (Pa) $ 48.00 $48.00 $48.00 15% 20% 22% $ $ $ $ $ $ $ $ $ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12 13 Victor 14 15 Retail price 16 Retailer margin 17 Altius Price toRetailer 18 Altius Variable Costs 19 Altius Unit Contribution 20 Altius Gross Margin 21 22 Discount by Altius 23 Unit Sales increase needed to maintain profit 24 Margin Margin Current Cut One Cut Two Price (P) (Pa) (Pa) $ 39.00 $ 39.00 $ 39.00 15% 20% 22% $ $ $ $ $ $ $ $ $ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Points of 13 SUM Open recovered workbooks? Your recent changes were saved. Do you want to continue working where you left off xfx 'Market Revenues Full!! E F Altius market share, unit sales in USD (millions) Calculating Market Value Market Share, retail ($) Total Market Retail Sales (in millions) Retailer Gross Margin Manufacturer Sales Manufacturer Gross Margin Gross Profit (in millions) Altius Primeria Bantam a-given (Exbibit 2) 55.2% 15.0% 17.3% b-given in case $ 483.0 C $ $ $ d-given (p. 4, Ex 3) 15.0% 20.0% 20.0% $ $ $ f-given (Exhibit 1) 0.0% 0.0% 0.0% 8:exf S $ $ Market Share (unit sales) h-given (Exhibit 2) 35.1% 17.1% 14.7% Value of market share point, unit sales (in millions) j=g/(h*100) $ $ $ How much is advertising budget? given p. 21 $ 35.0 $ 15.0 N/A Calculating Profit Margins Retailer Price Retailer Margin % Retailer Profit Margin Altius Price (to retailer) Altius Margin % Altius Contribution Altius Variable Costs Average Gross Profit per unit Percent of sales Calculation of weighted average contribution Average contribution for Victor line For the test Break-even contribution rate a-given (p. 6, Ex3) Victor TX 48.00 $ Victor Elevate 39.00 $ 27.00 b-given (p. 4, p. 6 15.0% 15.0% 20.0% caxb $ $ $ S " $ e-given (Exhibit 3) 70.0 416 S Work this 00% backward 5 17.75 see p. 6($7.75) from variable cost Sales from Sales from Victor TX, Victor h-given 70% $ E Elevate-Value of market share point, unit dollar sales (in millions) from MarketValue sheet) $ S * Elevate takes more than this percent of sales it harms Victor line and total revenue/profit from Altius MarkerValue sheet 0.0% Victor TX Current Price $48.00 Retail price Retailer margin Altius Price to Retailer Altius Variable Costs Altius Unit Contribution Altius Gross Margin Retail Price Price to Retailer Victor TX vc/u Victor TX Contribution $48.00 Current Price Hints a (P,) 15.0% $ b 48.00 15% P-a (1-b) $ roved fo d is from MARGIN sheet $ E-P-d $ E/P 0.0% 100% Victor TX Price $46.00 Retail price Retailer margin Altius Price toRetailer Current Price Price Cut One Hints (P.) b 15% (Pa) 48.00-46.004 15% 15 Retail Price PC $46.00 Price to Victor TX Victor TX Retailer vc/u Contribution (3-b) $ ES 15.0% d is from MARGIN sheet 5 45 E f 5 0.0% 0.0% A Altius Variable Costs Altius Unit Contribution Altius Gross Margin Price Discount by Altus to retailer Unit Sales increase needed to maintain profit h/E)-1 Discount: (Altius Price Altius Price,)/Altius Price Unit Sales Increase needed: (Altius Contribution,/ Altius Contribution cut)-1 100.0% 6 Victor TX Retail Margin 15% Retail Price Price to Victor TX Victor TX $48.00 Retailer vc/u Contribution Current Price (P.) 15.0% $ 48.00 15% S Retail price Retailer margin Altius Price toRetailer Altius Variable Costs Altius Unit Contribution Altius Gross Margin Hints a b P-a (1-b) d is from MARGIN sheet 5 $ 0.0% 100.0% Victor TX Retail Margin 20% Retail Price PC $48.00 20% 2 Hints D $ Current Price Margin Cut One (Pa) 43.00 b 15% Pa (1b) S d is from MARGIN sheet S E f 0.0% -Pa-Z 0.0% 0.0% Retail price Retailer margin Altius Price to Retailer Altius Variable Costs Altius Unit Contribution Altius Gross Margin Price Discount by Altius to retailer Unit Sales increase needed to maintain profit h=(E/-1 $ KOUND.2 2 2 3 Price to Retailer Victor TX Victor TX Contribution vc/u 20.0% 2+% 100.0% Cannibalization and Sales of Elevate Elevate, share of total sales 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% Altius market share, unit sales in USD (millions)